Procedures for money transfer services in Vietnam

Procedures for money transfer services in Vietnam (Internet image)

1. What is money transfer service?

According to Clause 7 Article 3 of Circular 46/2014/TT-NHNN, money transfer service means a payment service provider transferring a certain sum of money to the beneficiary at the request of the sender. The beneficiary and the sender may be the same person.

Money transfer services in Vietnam include:

- Money transfer services through the client’s checking account;

- Money transfer service not through the client’s checking account.

2. Procedures for money transfer services in Vietnam

Procedures for money transfer services in Vietnam according to Article 11 of Circular 46/2014/TT-NHNN are as follows:

* Procedures for providing money transfer services through the client’s checking account are the same as those for providing payment services.

* Procedures for providing money transfer services without the client’s checking account:

The bank shall establish and issue internal procedures for providing money transfer services without the client’s checking account in a quick, accurate and safe manner and all of the following steps shall be taken:

- Cash deposit slip preparation and verification:

When a client wishes to transfer cash, the bank shall instruct the client to prepare a cash deposit slip, specifying necessary information of the sender and the beneficiary: full names, ID card/passport number or information necessary for verification of other legal identity documents, phone number, contact address, signature (of the sender) and other information.

+ If the sender that is an individual must present his/her identity documents upon transfer of money. The sender that is an authorized person must, in addition to the identity documents, present a power of attorney in accordance with regulations of law. The sender that represents an organization shall, upon transfer of money, present proof of his/her representative capacity besides identity documents.

+ After receipt of the client’s cash deposit slip, the bank shall verify the slip, count the cash and transfer it in accordance with regulations.

- Cash deposit slip processing and accounting

+ At the sender’s bank, after verification of legitimacy of the cash deposit slip:

++ In case the beneficiary opens a checking account at the sender’s bank, within 01 working day from the date on which the client completes deposit procedures, the bank shall debit the sender's appropriate checking account and send a Credit Note to the beneficiary.

++ In case the beneficiary opens a checking account at another bank, within 01 working day from the date on which the client completes deposit procedures, the bank shall debit the sender's appropriate checking account, prepare and send a payment order to the beneficiary’s bank by using an appropriate payment system.

+ At the beneficiary’s bank:

After receiving the payment order, the beneficiary’s bank shall verify it and proceed as follows:

++ If the payment order is valid, within 01 working day from the date on which the payment order is received, the beneficiary’s bank shall credit the beneficiary’s checking account, and then send a Credit Note to the beneficiary.

++ If the payment order contains error, within 01 working day from the date on which the payment order is received, the beneficiary’s bank shall cooperate with the sender’s bank in tracing the form in accordance with regulations of law.  Upon receipt of the written response to tracing request, within 01 working day, the beneficiary’s bank shall execute or return the payment order to the sender’s bank.

++ If the beneficiary’s account is closed, within 01 working day from the date on which the payment order is received, the beneficiary’s bank shall return the payment order to the sender’s bank.

++ In case the beneficiary does not have a checking account at the bank, after receipt of the payment order, within 01 working day, the bank shall verify it, credit the beneficiary’s appropriate account and inform the beneficiary. In the case where the beneficiary receives cash:

If the beneficiary that is an individual must present his/her identity documents upon receipt of cash. The recipient that is an authorized person must, in addition to the identity documents, present a power of attorney in accordance with regulations of law. If the beneficiary is an organization, the representative of such organization shall, upon receipt of cash, present proof of his/her representative capacity besides identity documents.

Within 30 days since receipt of the payment order, when informed by the beneficiary’s bank, if the beneficiary does not show up to receive cash or the beneficiary’s bank fails to contact the beneficiary, the beneficiary’s bank must prepare and send a refund order to the sender’s bank.

+ The bank shall promptly send the Credit Note to the client opening an account at the bank in accordance with the agreement between the bank and the client and in accordance with regulations of law.

Quoc Dat

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